Microsoft has decided to give up its observer seat on the board of OpenAI, amid regulatory scrutiny from European authorities over its ties to the company. Microsoft acquired a nonvoting seat on OpenAI's board in November, following a tumultuous time involving the firing and quick reinstatement of OpenAI CEO Sam Altman. European regulators examined Microsoft's investment and partnership with OpenAI as part of a broader look at how large tech firms wield influence in emerging AI markets. Microsoft has invested billions in OpenAI and was seen as playing a leading role in developing "foundation AI" models through its support of the company.
